BY MICHAEL EBOH

United Bank for Africa Plc, through his subsidiary, Afri Pay, has signed a Memorandum of Understanding with Globacom Nigeria for the deployment of mobile payment and mobile banking services across the country.

Speaking during the signing of the MoU in Lagos, Managing Director, Afri Pay, Mr. Yinka Adedeji said the partnership with Glo is to enable the bank through its new mobile payment product, U-Mo, reach millions of Nigerians and subscribers on Glo’s network and Glo’s mobile payment platform, ‘Glo Text Cash.’

He stated that the product which will be launched in a couple of days is UBA’s idea of leveraging on its vast infrastructure. Adedeji disclosed that customers on the mobile banking product will enjoy a number of benefits, ranging from non-restrictions on cash limit, money transfer and banking services from any location and they will not be required to open an account with the bank.

He further noted that this is the bank’s contribution towards ensuring the success of the Central Bank of Nigeria’s mobile money framework and drive towards a cashless economy.

Also speaking, Group Chief Operating Officer, Globacom Nigeria, Mr. Mohammed Jameel, said the partnership came as no surprise, as Glo has been partnering with UBA on a number of ventures in the country.

He said the mobile payment and mobile banking product will provide subscribers and customers with 24 hours banking services daily, apart from its advantage of cash transfer from one individual to another. He further disclosed that in the near future, the product will be further developed to perform other services, such as payment of goods and services purchased from both big and small businesses.

He expressed optimism that with the launch of the product in the next couple of days, it will become an integral part of Nigerians, without placing extra demands on them on the need to open a bank account.

He further stated that the product will help in the drive towards reaching the vast majority of unbanked population across the country. Speaking further, Mr. Yinka Kuponiyi, Director, Tele-banking, Globacom Nigeria, explained that the partnership becomes necessary going by the CBN’s granting of Approval-in-Principle to 16 firms to undertake mobile money services in Nigeria.

He also said that the mobile payment product is hinged on the high growth rate recorded in the telecommunication sector compared to the banking sector. He said, “We have about 150 million people in Nigeria, but records show that there are less than 23 million bank accounts in the country, compared to the telecommunication sector, which is enjoying significant growth.

“It is on this basis that UBA, through his subsidiary that also won the approval to deploy mobile banking, Afri Pay, is partnering with Glo to reach a vast majority of Nigerians.

“With this partnership, UBA is tapping into the advantage presented by Glo and its reach across the country, especially as Glo has presence across the country, in rural areas and even the remotest part of the country.”

In his own remark, Deputy Managing Director Designate of UBA, Mr. Kennedy Uzoka, expressed confidence on the ability of the product to appeal to its customers and a vast majority of Nigerians, especially with its numerous advantages.